Explain Deming Chain Reaction In addition what are the benef

Explain Deming Chain Reaction. In addition, what are the benefits to companies following his methodology?

Solution

Deming Chain Reaction

Dr.W.E.Deming, Demings chain reaction, explains about the positive effects of improving quality in the organisation. In all aspects organisations are woring hardly and put all efforts for the longrun survival. From that organisations tends to help/serve the community as well.

Dr.W.E.Deming throughly understood the facts of quality and strongly insisted the \"survival\" as main goal for organisations.

Following chart shows clearly aabout Dr.W.E.Deming\'s Chain Reaction:

Lot of hard work by employees in the organisations leeds to quality of work and they finds the means of their role in work. When quality improves the productivity increases so that employees works effectively in every organisation. When productivity increases cost of production decreases by means of effective work and economical productivity. Effective productivity results in decrease costs. The lower cost results in price reduction with effective productivity, that is, quality products with less price. Organisations serves the community with low price product with quality product. So that organisations can capture markets and can stay in the market for long run. When the organisations stay for long run it has to produce more quality products with less price. Hence organisations can provide mor job opportunity to the society. Long run growth results with good ROI.

Benefits to the companies by following Dr.W.E.Deming chain reaction methodology:

When the companies are clearly understands Dr.W.E.Deming chain reaction methodology also provides motivation to the workers in the working environment. By effectively working workers can put their effort to produce quality products by effective hard work. If companies adopting the first step it leeds to decrease in price.And they can survive in their market for longrun with less priced quality product. By satisfying customers company has to expand the market and should produce more quality product. Hence they can offer more employement oportunity to the community.